Acasta Enterprises entered into a non-binding term sheet with Martello Finance to sell Stellwagen Group. As a condition of the sale, the company is required to repay $25 million under its $150 million credit facility. Acasta has requested an extension of the payment due date.

According to a Sedar filing, Morgan Stanley Asset Funding leads the lender group for the $150 million facility.

The funding of the repayment was to be derived from the sale of Stellwagen or certain of its assets.

To facilitate a definitive agreement with respect to the sale of Stellwagen, Acasta has entered into an extension agreement with the lenders under the credit facility to extend the deadline for payment until March 7, 2018.

As previously disclosed, the board of directors of Acasta appointed a special committee of independent directors to, among other things, oversee the potential sale of Stellwagen and consider other alternatives to maximize value for the company’s shareholders.

The independent committee has retained the services of Blair Franklin Capital Partners to provide independent financial advice and has engaged Osler, Hoskin & Harcourt as independent legal advisor to the independent committee.